bloggingbuyouts

Without even looking at the numbers or knowing anything about the deal, most people could probably tell you that Apollo Group's acquisition of Realogy, parent company of Century 21 and Coldwell Banker, at the height of the real estate boom is probably not doing too well.

And that's just the beginning of the private equity giant's woes. There's also the Linens n' Things deal on the brink of bankruptcy and Claire's Stores. The New York Times takes a look at the company and its top man, Leon Black, who continues to invest aggressively in spite of the troubled market. Apollo came close to buying billions in debt from Citigroup last week.

The Times piece has an interesting quote from Black: "You can get equity-type returns from debt instruments that may be a better play than pure equity right now, where you can't get leverage."

Apparently the lack of liquidity in debt has made that market a lucrative stomping ground for vultures. If Black and other are content to look for value buying back debt they issued a few years ago at 40 cents on the dollar, we could see the private equity slowdown continue for awhile -- that would be bad news for stock market investors who look to buyout shops to take companies private at substantial premiums.